FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2026

FAIR VALUE MEASUREMENTS

Schedule of securities and derivatives measured at fair value on a recurring basis

(Dollars in thousands)
March 31, 2026
ASSETS		Level 1		Level 2		Level 3		Total
Debt Securities Available-for-Sale:
U.S. Treasury securities	$	7,536	$	—	$	—	$	7,536
Obligations of U.S. Government Agencies and Sponsored Agencies:
Mortgaged-backed		—		172,340		—		172,340
Other		—		2,810		—		2,810
Other mortgage backed debt securities		—		34,319		—		34,319
Obligations of state and political subdivisions		—		74,215		—		74,215
Asset-backed securities		—		60,480		—		60,480
Corporate debt securities		—		35,164		—		35,164
Total debt securities available-for-sale	$	7,536	$	379,328	$	—	$	386,864
Marketable equity securities	$	1,984	$	—	$	—	$	1,984
LIABILITIES		Level 1		Level 2		Level 3		Total
Derivatives	$	—	$	(2,452)	$	—	$	(2,452)

(Dollars in thousands)
December 31, 2025
ASSETS	Level 1		Level 2		Level 3		Total
Debt Securities Available-for-Sale:
U.S. Treasury securities	$	7,536	$	—	$	—	$	7,536
Obligations of U.S. Government Agencies and Sponsored Agencies:
Mortgaged-backed		—		176,251		—		176,251
Other		—		3,294		—		3,294
Other mortgage backed debt securities		—		36,431		—		36,431
Obligations of state and political subdivisions		—		74,925		—		74,925
Asset-backed securities		—		63,493		—		63,493
Corporate debt securities		—		32,296		—		32,296
Total debt securities available-for-sale	$	7,536	$	386,690	$	—	$	394,226
Marketable equity securities	$	1,810	$	—	$	—	$	1,810
LIABILITIES		Level 1		Level 2		Level 3		Total
Derivatives	$	—	$	(3,859)	$	—	$	(3,859)

Schedule of individually evaluated loans measured at fair value on a nonrecurring basis

(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets at March 31, 2026
Individually evaluated loans:
Real Estate	$	—	$	—	$	12,745	$	12,745
Total individually evaluated loans	$	—	$	—	$	12,745	$	12,745

(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets at December 31, 2025
Individually evaluated loans:
Real Estate	$	—	$	—	$	12,776	$	12,776
Commercial and Industrial						10		10
Total individually evaluated loans	$	—	$	—	$	12,786	$	12,786

Schedule of fair value measurement inputs and valuation techniques

(Dollars in thousands)	Quantitative Information about Level 3 Fair Value Measurements
March 31, 2026	Estimate		Valuation Technique	Unobservable Input	Discount Range	Weighted Average Discount
Individually evaluated loans - collateral dependent	$	12,745	Appraisal of collateral1,3 Certificate of Inspection1,3	Appraisal adjustments2 Qualitative Adjustments4	(5%) – (36%)	(13%)
December 31, 2025
Individually evaluated loans - collateral dependent	$	12,786	Appraisal of collateral1,3 Certificate of Inspection1,3	Appraisal adjustments2 Qualitative Adjustments4	(0%) – (48%)	(18%)

1. Fair value is generally determined through independent appraisals or Certificates of Inspection of the underlying collateral, as defined by Bank regulators.

2. Appraisals may be adjusted downward/discounted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The typical range of appraisal adjustments are presented as a percent of the appraisal value.

3. Includes qualitative adjustments by management and estimated liquidation expenses.

4. Collateral values may be adjusted downward/discounted by management for qualitative factors such as economic conditions and estimated liquidation expenses.

Schedule of fair value of financial instruments, including financial assets and financial liabilities

(Dollars in thousands)	Carrying		Fair Value Measurements at March 31, 2026
	Amount		Level 1		Level 2		Level 3		Total
FINANCIAL ASSETS:
Cash and due from banks	$	9,007	$	9,007	$	—	$	—	$	9,007
Interest-bearing deposits in other banks		127,832		—		127,832		—		127,832
Restricted investment in bank stocks		8,944		—		8,944		—		8,944
Net loans		923,577		—		—		924,603		924,603
Mortgage servicing rights		192		—		—		192		192
Accrued interest receivable		4,844		—		4,844		—		4,844
FINANCIAL LIABILITIES:
Demand, savings and other deposits		647,198		—		647,198		—		647,198
Time deposits		484,091		—		483,063		—		483,063
Short-term borrowings		136,084		—		136,860		—		136,860
Long-term borrowings		106,000		—		106,827		—		106,827
Subordinated debentures		25,000		—		21,702		—		21,702
Accrued interest payable		2,680		—		2,680		—		2,680

(Dollars in thousands)	Carrying		Fair Value Measurements at December 31, 2025
	Amount		Level 1		Level 2		Level 3		Total
FINANCIAL ASSETS:
Cash and due from banks	$	8,755	$	8,755	$	—	$	—	$	8,755
Interest-bearing deposits in other banks		112,494		—		112,494		—		112,494
Restricted investment in bank stocks		8,944		—		8,944		—		8,944
Net loans		939,013		—		—		945,462		945,462
Mortgage servicing rights		196		—		—		196		196
Accrued interest receivable		4,997		—		4,997		—		4,997
FINANCIAL LIABILITIES:
Demand, savings and other deposits		633,448		—		633,448		—		633,448
Time deposits		503,988		—		503,245		—		503,245
Short-term borrowings		136,845		—		137,887		—		137,887
Long-term borrowings		106,000		—		107,124		—		107,124
Subordinated debentures		25,000		—		21,706		—		21,706
Accrued interest payable		2,735		—		2,735		—		2,735